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As we watch 2020 in the rearview mirror, we look ahead with the scars from the year. And while many people spend years dreaming about the day they will retire, for some, this vision may not become a reality as soon as they would want. If you have a sneaking suspicion that you may be a person who needs to delay retirement, then here’s what you need to know. Many factors contribute to a delayed retirement. Here are three of the most common ones.

1. You Have Too Little Money Saved

If you retire at age 67 and live until age 95, then you’ll need roughly 28 to 30 years’ worth of income saved up in order to retire. So, assuming this is true, just how much money would you need to have saved if you do live that long? A CNBC article says that a 30-year retirement requires at least a million dollars to fund it.

In order to get ahead of this trend, it’s necessary to create a plan for the retirement years. It’s impossible to hit a target that you don’t have.

2. The Amount of Education You Have Plays a Role

Retirement is delayed among those who have advanced degrees. The reasons behind this are at least two-fold. For one thing, those who took the 10 or 12 years necessary to get advanced degrees stay in school longer and therefore, join the workforce later in life. This delays their ability to contribute to retirement savings accounts and to save the money necessary to retire.

The kind of work that people in this demographic do also contributes to their decision to stay in the workforce for a longer amount of time. The work isn’t physically demanding and often pays a higher salary. As a side benefit (and another related contributing factor), this demographic of workers usually work at jobs that they actually like. For them, retirement isn’t much of a motivation. They like what they do, so they stay in the workforce for a longer time. Thus, they choose to delay their own retirement. 

3. You Have Too Much Debt

According to Market Watch, having too much debt can take a big bite out of your retirement savings. The more debt you have to pay down, the less money you have to contribute to your retirement savings.

One of the biggest contributors to debt during a person’s retirement years is the cost of healthcare. Healthcare costs eat up over a quarter of a million dollars on average during a person’s retirement years. Some of this debt comes from illnesses like diabetes or cancer. Some of the expense comes from having to pay for healthcare out of pocket. If those healthcare costs come before retirement, say in the case of a catastrophic illness, then retirement will be delayed for an indeterminate amount of time.

Final Words on Delayed Retirement

If you’re one of those lucky people who love what you do, then you may not care that your retirement gets delayed by 5, 10, 20, 30 years or more. However, if you count yourself among those who either has not saved enough or who has too much debt, then you need to take a serious look at your finances. The only way you will be able to retire is to take control of your finances and to create a plan for retirement. If you find yourself in that boat, then your best bet may be to talk to a financial planner about what you can do to turn the tide of your finances.

As we head into 2021, it is a good idea to consider the resolutions you might be planning. You might want to do things like exercise more often or drink more water. However, you ought to also consider saving for retirement and reaching any other financial goals that you might have as well. Remember, this is the time of year when you get a clean slate to become a different person and do better in areas that you may have struggled with in the past.

Think About the Vital Documents You Need to Work On

It is not the most pleasant thing in the world to think about but part of getting older is thinking about your will. We all know that we will pass away at some point but not many of us do anything about making sure our family is taken care of when that time comes. It is almost a little selfish not to plan ahead for the inevitable. With this in mind, the new year is the perfect time to sit down with an estate planner or any other expert who can help you get some of those documents in order.

Invest in an IRA

An individual retirement account (IRA) is a great option for the person who is nearing their time to retire (or also for those who are far away from it). It is a way to save and invest for your non-working years. You cannot allow yourself to fall into the false notion that the government with its social programs will be there to bail you out. We have to hope that such programs will exist for future generations. Even if you are lucky enough to receive your full government entitlement benefits, it still may not be enough to get you through retirement comfortably.

Investing in an IRA can help a person increase their odds of having a comfortable lifestyle because for most people, it helps them grow the funds that they put into it at a nice clip. The earlier a person starts their IRA investing, the larger their returns tend to be over time.

Create an Emergency Fund

Life is far from predictable. You can estimate what your expenses will be for routine things but it is unlikely that you will plan properly for those things that can sneak up on you. There could be emergency medical expenses or any number of other issues that you have to face going forward. If you are wise with your planning, you will go ahead and put in some extra budget space for the things that no one sees coming. Just go ahead and add an extra ten to twenty percent to whatever number you believe would allow you to retire comfortably. Then, you will have a margin of error built into your figures.

Take Stock of the Healthcare Picture

The picture of healthcare in the United States is a pretty fluid thing. It is not like in other countries where there is universal coverage for a lot of people. Instead, the United States has an odd hybrid type system that changes all the time. It is a good idea to take a look at the particular mechanics of the healthcare system as you reach the age when you could retire. Just having some idea of what is or not covered can help you get a better grasp on what moves you need to make to protect yourself in this area.

After a stressful 2020, you’re thinking more-and-more about retirement.While the bulk of your retirement prep work and heavy lifting has been completed by the time you are a couple of years from retirement, there are still a few boxes you’ll want to check off before finally saying adios to the workforce. Let’s go through them. 

1. Social Security Decision 

You’ll need to decide when to collect Social Security benefits. The earliest age is 62. Unless you are retiring early and need the benefits to help cover expenses like health insurance, it’s advantageous to wait. At 62, your benefits would be reduced by 25% or more. You won’t collect 100% of your benefits until you’re 66 or 67, depending on what year you were born. When you wait to collect, keep in mind that benefits increase by 8 percent  per year up until you are age 70. 

2. Get Your Finances Simplified 

Do you have multiple brokerage accounts, savings accounts, checking accounts, 401(k)s, IRAs, and other retirement savings accounts? Perhaps, you have lost track of an account? 

First, simplifying and consolidating your various small financial accounts into a larger one will make it easier for your heirs to step into control if you had a medical emergency, needed long-term care, or passed away.  

Second, you can reduce paperwork, possibly save some cash, and better keep track of your income to expenses ratio by having everything neatly confined. For example, aggregation with a single provider can offer some economies of scale like cheaper expense ratios. 

Lastly, if you have lost track of an account, then you are missing a piece of your financial pie that could make a big change in how retirement unfolds.  Look at: missingmoney.org and unclaimed.org as good places to start tracking lost and unclaimed funds. 

3. Give Your Portfolio A Health Checkup 

Ideally, your portfolio at this point should be moderate-risk. It should be about half stocks and half bonds. If the stock market is causing you any worry, then consider a move to more steady stock funds like VEIPX or TWEIX, who have both held up well in previous downturns. 

A bucket system may help protect you against your biggest retiree risk:  forced sells during plunges. During plunges, the bucket system allows you to have enough cash and bonds that you won’t be forced into selling stocks to pay your debts. You will divide your nest egg into three buckets:  

• Bucket one – cash for living expenses not otherwise covered in the next few years. 

• Bucket two – short and intermediate term bonds to cover money you will need in the first ten years of retirement. 

• Bucket three – diversified stocks for money needed in the distant future.  

4. Make A Plan With HR 

Schedule a time to speak with your company’s human resources department about your retirement. Topics you will want to ask about include:  

• Are unused vacation days paid upon retirement? 

• Is receiving profit-sharing payouts, bonuses, 401(k) match, or any other income aspect impacted by your planned retirement date? 

• If retiring before Medicare-age, what retiree health benefits are offered? 

• If a 401(k) is left as-is versus rolling it over into an IRA, can distributions still be taken? How? Is there a fee? 

• If a pension is available, what are the options for payout? 

One note on lump-sum pensions to keep in mind is that extending your retirement may not increase your pension. Lump-sum pensions are calculated based on interest rates. The higher the interest rate, the lower the pension. Extending your retirement when interest rates are rising can actually result in your pension going down, not up. 

5. Study Medicare Closely 

Medicare is a difficult beast to navigate, and the sales pitches you get from supplement insurers only add to the confusion. So, you will want to start studying now, understanding how Medicare works, what coverage gaps exist for you, and what you need versus don’t need in supplements. Here are some highlights you’ll want to consider:  

• Upon turning 65, Social Security beneficiaries are automatically enrolled in Medicare parts A (hospital care) & B (doctor and outpatient visits.) If you are delaying your SS payment, then it’s up to you to enroll on your own.  

• If delaying your SS claim and you are still covered by your employer’s health plan, then you will likely find it beneficial to go ahead and sign up for part A at age 65 since there is usually not a premium.  

• You may want to opt out of part B since it charges you a monthly premium for service. 

• You may also want to opt out of part D, which covers prescriptions. The caveat here is if your employer’s offered insurance is as good as what Medicare offers. If it is not as good, and you select to opt out, then you will face penalties when you sign up in the future. 

• To ensure you are not left without coverage, plan to sign up for part B around six weeks prior to retirement. You have eight months after leaving your job to sign up for part B without penalty. 

• Decide if you want Medicare Advantage. This is basically a combination of parts B & D with a supplemental medigap plan to cover the copayments, deductibles, and other traditional healthcare costs that Medicare doesn’t include. These plans provide private insurer medical and drug coverage within a network, meaning you will need to carefully research your plan options and determine if your preferred health care providers are in the offered network of a plan. 

6. Should An Annuity Be On The Agenda? 

Without a traditional pension, an immediate annuity might be a good option for you. A common strategy is to calculate fixed monthly expenses – car note, mortgage, insurances, utilities – and buy an annuity that gives a congruent payment. Basically, you give an insurer a lump sum of money in exchange for them paying you a monthly amount each month for either the remainder of your life or a specified amount of years. If you choose a joint-and-survivor annuity, that payment continues through your spouse’s life should he/she outlive you. 

Another strategy is a deferred income annuity. Ideally, these are bought at least 10 to 15 years out from retirement since they take 10 years to mature. However, if you’re taking an early retirement or expect your expenses to be greater in the next decade, a deferred annuity may be a good option. They are  much less costly than an immediate annuity, but they also have a major risk versus reward. Your heirs get nothing if you pass away before payments begin. The fix is to opt for return-of-premium benefits, but this reduces your payout quite a bit.  

In closing, the finish line is just around the corner, but now isn’t the time to slack off  just yet. You’ll want to make sure these important boxes are checked so that you can retire with the peace and confidence you have worked all these years to afford. 

Source: 

https://www.kiplinger.com/article/retirement/T047-C000-S002-countdown-to-retirement-1-year-away.html 

Inflation is a reality in all economies, and generally occurs for one of two reasons, know as “demand-push” or “cost-pull.” Businesses and companies that want to retain their employees have to insulate them to some degree against the rising and falling of the value of a dollar. This means that few people will generally feel the full effects of the rising costs of living throughout the course of their working lifetime. The people that do generally feel and understand its full effect are elderly or people living on a fixed financial base of some kind. Here is a brief overview of the two types of inflation and why you should plan for it in retirement.

1. Cost-Push

When the cost of providing goods or services goes up, businesses pass these increases on to the consumer. One example of this is the minimum wage. When businesses have to pay their employees $8 an hour, they charge a corresponding amount for their goods or services to cover the cost of wages. If the minimum wage rises to $10, however, then they raise the price of their goods and services to adjust for the increase they now have to pay in wages. This creates an increase almost across the board in goods and services. Thus a person making a $10 minimum wage is no better off than when they were making $8 an hour, but they are also not worse off, since they did at least receive an increase in pay to adjust for the increase in the cost of goods and services. The people this affects negatively, however, are people living on a fixed income because their income generally does not adjust accordingly to the rise in prices.

2. Demand – Pull

When the demand for something rises, so does the cost. When there is a shortage of food, gas, water, housing or any other good or service, it also creates an increase in cost. Whenever there is a surplus of a good or service, it drives prices down. This is why retirees living in heavily populated areas or areas that grow in population often have to move to a less populous area where there is less demand. Businesses in areas where shortages create higher prices generally have to adjust the salaries of their employees accordingly in order to keep them, so those still in the work force are not generally as affected by this type of inflation as those who are unemployed or retired.

Regardless of when it occurs or how long it lasts, the expanding and contracting of the value of the dollar is an important thing for those planning for retirement to consider. It’s not a question of if it will happen, but when and for how long. While you may be able to live perfectly comfortably on $1,500 a month now, that doesn’t mean you will still be able to do so in 10 years -or at least not while living in the area where you are right now.

The good news is that currency values rise and fall around the globe, so there are almost always inexpensive places to live. The problem, of course, is how settled where you are now and how badly you want to stay there. If you like where you live and plan on staying there upon retiring, then it’s important to develop a good, solid financial plan for dealing with the inflating and deflating of the dollar over the course of the remainder of your life after retirement. It is certainly possible to live on a fixed financial base, but it also takes careful planning and a great deal of insight into the realities of the world of currency and finance.

This year has forced some to think about retiring early.  When it comes to retiring early, some of the benefits are obvious: you get to live your life without the constraints of work, and you are able to pursue your own interests. But there are other good reasons for retiring early, and there are some reasons why retiring early is not the greatest idea.

Your Dedication is Gone

One of the good reasons to retire early is that you are simply not dedicated to working anymore. When you are no longer emotionally interested in working, your performance deteriorates and your company suffers. 

Working Took its Toll

In some professions, such as construction and law enforcement, the physical and emotional demands of the job can become too much over time. After a few years in a high risk profession, your body and mind have simply had enough and it is time to go home and rest.

Your Finances Become More Flexible

Most people do not realize how expensive it is to work until they are no longer working. When you work any job, you incur expenses such as wear and tear on your car, transportation expenses such as gas or bus passes, work clothing costs, daycare and miscellaneous medical costs for work-related injuries. If you have planned your finances to allow yourself to retire early, then you will find that your money goes much further when you are not working.

Your Health Could Suffer

For some people, retiring early means abandoning the daily physical activity working required and giving up a big piece of their identity. Retiring early can cause physical and mental problems that could become very serious over time.

You Lose Your Social Circle

After years of working, you tend to take for granted the notion that you will see most of your friends at work five days out of the week. Even people who think that the people they work with are only acquaintances suddenly find that the loss of the social circle they developed at work is devastating.

You Didn’t Plan Well

When you retire before the age of 65, you run the risk of losing out on health insurance. Medicare automatically kicks in for every American when they turn 65, but what would you do until that age? Did you plan your retirement finances right, or will you run out of money? Many people forget to take inflation into account when they plan their retirement, and that makes retiring early financially dangerous.

There are two sides to every story, and that includes the story that goes with retiring early. The idea of walking away from work before the age of 65 can sound appealing, but there are plenty of variables to consider before you make that decision. If you do want to retire early, then talk about it with your family and ask your financial adviser if you have structured your savings properly to be able to live without a paycheck for the rest of your life.

Sources:
https://money.usnews.com/money/blogs/on-retirement/2015/02/05/6-reasons-you-shouldnt-retire-early

https://www.bankrate.com/finance/retirement/signs-ready-to-retire-early-1.aspx

It is not surprising that the holiday season is one of the most expensive for individuals. Giftgiving, decorating and holiday treats can tap into the budget if a few general rules are not followed. Here are five tips to avoid overspending this holiday season.

Set a Strict Budget

To alleviate the stress of spending over the holiday season, a strict budget should be set even before the holiday season begins. If a person is giving gifts to a few individuals, their names can be written down and a budget planned for each individual. A decision should be made on how much to spend and how many gifts will be given. A budget should also incorporate holiday spending on food and decorations. It is easy to get into the festive mood during the holidays but that is when overspending creeps up on a person and they spend more money than they should.

Avoiding Retail Tricks

When a person decides to shop for items, it is easy to get tricked by retail stores. Even when a budget is firmly in place, many people tend to overspend. While it all comes down to discipline, retail stores are good at enticing money out of people’s wallets. When shopping smart, a person should watch for decoy pricing, loyalty cards and loss leaders. Often, a retail store will entice a buyer with a low-priced item. Unfortunately, that item will be sold out and require a person to spend even more money. However, there is a good way to save money when shopping for gifts. Gift cards are often discounted at chain stores such as Office Depot, Best Buy or Costco. Using these as gifts can help save a few extra dollars.

Track Every Penny

One of the secrets to keeping a budget is to keep track of spending every day. While this is true throughout the year, it is especially important when a holiday season rolls around. Overspending during the holidays can quickly occur when a person is in a joyous mood or feels like they can splurge. Free online software that helps with budgeting can be used to track expenses or a simple pen and paper pad.

Spending On Yourself

It is easy overspend on yourself when out shopping for others—a person sees something that they like and treat themselves. In fact, statistics indicate that about 60 percent of individuals are giving themselves gifts during the holiday season. This can be limited by following an overall budget and writing down specific items to be bought when shopping online or in a brick-and-mortar store. Another caveat to watch out for is the purchase of gift cards. Over 70 percent of people shopping for gift cards will also purchase one item or more for themselves. Discipline must be followed so that a person does not overspend.

Set Limits on Spending

If a person’s budget is tight, they shouldn’t feel guilty about purchasing less than in previous years, or not at all. Living comfortably without stress is much more important than handing out material goods. If a person’s budget is tighter than other years, they should decide early on how many gifts they are going to give. Setting limits also includes spending money on holiday decorations or food. It can all be budgeted.

https://money.usnews.com/money/blogs/the-frugal-shopper/2015/12/07/8-tips-to-avoid-overspending-this-holiday-season

https://www.nfcc.org/consumer-tools/consumer-tips/avoiding-to-overspend-during-the-holidays/

https://www.becomingminimalist.com/avoid-holiday-overspending/

The Internal Revenue Service recently reported changes to the 401k and IRA. The agency’s announcements to Congress issues new regulations. Each alteration will impact retirement accounts and 401(k) contribution limits in 2021. Here are a few things Americans need to know regarding their announcement. 

What Savers Can Expect

Most 401(k), 403(b), 457 plans, and Thrift Savings Accounts will be within the same framing as before. The current rules would allow people age 50 and over to save money by contributing $19,500, or $26,000 to a traditional IRA. Likely, regulations will not change for SIMPLE retirement accounts. They typically maintain $13,500 contribution limits. The IRS allows individual retirement account contribution limits to remain at $6,000. Additional catch-up contributions for older contributors will also stay at $1,000. 

There are a few changes that the IRS has announced regarding IRA and 401k contributions for 2021:

Tax Deduction Phase-outs for Traditional IRA Contributions

Taxpayers will be able to deduct traditional IRA contributions. To qualify, recipients may not participate in employer-sponsored retirement accounts. They also may not make above earnings limits. This change subjects employees to reduced or eliminated deductions. This ruling also includes spouses covered by the same plan as the primary recipient. 

2021 Phaseout Ranges

In 2021, single taxpayers must consider the phaseout range which will increase by $1,000. Ranges for spouses who file jointly with coverage from employer-sponsored plans have changed. It is now $66,000 to $76,000 and is set to increase at $105,000 to $125,000. Limits to Couples’ workplace plans that only cover spouses individually are necessary. The traditional IRA contribution will require a higher phaseout range. The changes to IRA and 401k regulations are not necessarily the same for every situation. If separate plans cover both spouses, the range is consistent with 2020, remaining at $0 to $10,000. Look at the IRS publications for the most current regulations and info regarding other aspects specific to your overall financial situation.

Roth IRA Contributor Prerequisites

Some of the changes include income limits for Roth IRA contributions. Their income phaseout ranges for 2021 include the following. 

Roth IRA phaseout ranges: 

• Single and heads of households – $125,000 to $140,000 (an additional $1,000 from 2020) 

• Married couples who file jointly – $198,000 to $208,000, 

• Married couples filing separately – $0 to $10,000 (unchanged) 

Saver’s Credit income limits: 

• Low- and moderate-income couples file jointly – $66,000 (an additional $1,000 from 2020) 

• Heads of the household – $49,500 

• Single individuals / married filing separately – $32,500 

Rules for IRA and 401k contributions, when first released, will underline many adjustments. It is up to you to stay updated. If you are curious about what is in store for you, it is always wise to be alert. Remember, tax changes happen every year. The IRS has to release any changes to the public before they become active.

Most will want to wait for more detailed information from the IRS before taking any action. It would be best to learn as much as you can about the forthcoming changes. They will likely affect any significant decisions.

Source: https://www.marketwatch.com/story/401-k-and-ira-changes-for-2021-where-and-how-can-you-contribute-next-year-11603748200

 With every change in the world, there always seems to be the temptation to make an impulsive financial decision, especially when it comes to investing. This year especially was difficult for investors who made such decisions when the coronavirus hit hard and upended the stock market bringing a lot of panic selling with it. Events like the coronavirus and this year’s presidential election are always impactful when it comes to investor markets, but you need to be careful about investment decisions made solely on market movements. You can keep your long-term goals and continue building wealth if you follow certain tips.

Hold Steady When There’s A Sudden Dip

The COVID-19 recession was not a typical recession since a global pandemic is a rare event, but there will always be future corrections and recessions when economic activity reaches its peak and has to slow down. A recession certainly can cause a drop in your portfolio, especially during a volatile stock market period, but this is often only temporary. Unless a company whose stock you own is actually in danger of going bankrupt and becoming insolvent, chances are it’s going to rebound and perform a lot better once the market stabilizes again. In fact, a market dip could be the perfect time to buy more stocks or mutual fund shares.

Watch Out For Bubbles

Sometimes certain industries show promise of becoming the future of consumer demand, but they can end up being bought into too prematurely at times. For example, back in the early 2000’s, many investors were buying into new web-based companies and those they expected to become tech giants, and as a result too many stocks became overpriced and caused market bubbles. When your investments start becoming unusually high valued, it’s usually a good idea to sell off overvalued assets and place your funds in more stable assets until the market cools.

Pay Attention To Government Regulations

One issue you do need to be aware of is government actions in response to major events that could impact your investments. For example, the Dodd-Frank Act greatly affected the real estate market, and new tax regulations are always affecting how investors allocate their assets. It’s important to stay informed about how regulations will affect various industries, especially sectors like energy and manufacturing, and consider whether you need to diversify more out of those industries. You should also consider how capital gains taxes and dividend taxes affect your assets, and also move assets around between tax-deferred accounts and standard brokerage accounts.

Be Aware Of The Federal Reserve’s Interest Rate Changes

Another thing that influences the stock market is the Federal Reserve, and when it adjusts the federal funds rate, the market can move up and down. It’s often discussed that when interest rates go up and the stock market trends down, the bond market is the place to go. But before you consider adjusting your portfolio into bonds, consider where you are in your career, and when you expect to retire. Bonds tend to bring in much lower earnings, and they are not a great hedge against inflation. If you’re interested in other investments during interest rate changes, and you’re willing to take on a little risk, you might consider investing in alternative assets such as real estate or even precious metals.

Have A Budget For Retirement And Plan What You’ll Do When You Have To Take Distributions

Remember, if you own certain retirement accounts, you have to take minimum distributions from it by a certain age as specified by the IRS. The good news is they’ve bumped the age back from 70 1/2 to 72 for certain individuals. But once you start taking those distributions, you need to make sure they are being budgeted wisely so you can guarantee income will last all throughput your retirement.

Older Americans on Medicare have become the focus of criminals. According to government officials, they are now utilizing various fraud schemes associated with the coronavirus pandemic. The common goal of these criminals is to get an older person’s money or Medicare number. In recent months, the Department of Health and Human Services Office of Inspector General has received over 1,400 fraud complaints associated with Covid-19. The office also acknowledges that many frauds often go unreported. This is because the victims are too embarrassed or they may not know how or where to report what happened to them.

Avoid Getting Ripped Off

There are two things older Americans need to remember to avoid being ripped off.

*Medicare does not contact its clients and ask them for their Medicare number. It already has their Medicare number. They won’t ask for any other sensitive information like a credit card number.

*Medicare won’t contact a client out of the blue with a social media post, text message, phone call, or email. Any unsolicited communications from Medicare is a sign of a scammer.

Script By Phone

It is recommended for individuals to have a script near their phone. This is an important tool that can be used to shut down scammers. It could be a simple statement that a person doesn’t give out their personal information to any type of unsolicited call. Should the caller claim to be from a doctor’s office, a person should contact their doctor’s office with a phone number they know is real.

Medicare Contact

Older Americans need to realize that Medicare works in many ways like a private-sector insurer. It will commonly contact its clients by mail. If a person has not initiated contact with a Medicare representative, they should realize that getting a random phone call from Medicare just won’t happen. If anyone believes they are experiencing Medicare fraud involving Covid-19 they can report it online. They can also call 800-447-8477.

Information

Data that someone can use to identify a person is known as Personally Identifiable Information (PII). This includes such things as email addresses, Social Security numbers, financial account numbers, driver’s license numbers, and more. One of the most effective ways to avoid being scammed when contacted by a person claiming to be from Medicare is to hang up on them.

Scams

There are various scams associated with Covid-19 that focus on older Americans.

*Facebook Accounts – Older Americans are having their Facebook accounts hijacked. When this is done, another person will pose as someone who has received an HHS grant because of the Covid-19 pandemic. The amounts could be up to $15,000. The HHS does issue grants but only to researchers.

*Scammers have contacted older Americans and told them they are eligible for a Covid-19 Wellness Kit. It would have face masks, hand sanitizer, and more. Some were promised a Covid-19 test kit they could use in their home. Others were offered additional Medicare coverage. All of these items came with a price and nothing was delivered.

*Scammers have gone to the home of older Americans and administered Covid-19 tests that are fake. Some have also had fake drive-through test sites. There have also been fake cures and treatments provided.

*Scammers have called and posed as hospital or medical employees. They then tell older Americans their doctor wants to test them for Covid-19. These scammers will claim to be setting up an appointment that is fake and will require a copay be given in advance by credit card.

Older Americans should be suspicious of any unexpected visitors or callers. They should never respond to a text message about Covid-19 or open any hyperlinks. On social media, any sites that provide offers or ads about Covid-19 testing should be ignored. Ignore anyone pretending to be a Covid-19 contract tracer. Real contact tracers never request a person’s financial information or Medicare number. Following these suggestions is a big step toward avoiding being scammed by a criminal.

The world of COVID-19 is, at least for the foreseeable future, the new normal of society. That means that there’s no time to slow down on retirement investing, as those same deadlines are coming up as quickly as ever. Below are some of the most important things to keep in mind during this unusual era.

Look at Your Estate Plan

With the uncertainty of the times, it does make sense that many would start thinking about what could happen with their families if a worst-case scenario was to occur. While you may not need to panic, taking the time to update your estate plan is a sensible way to deal with the current state of the world. Take a look at your current plan, determine if it makes sense for the current atmosphere, and then make the changes that will help you to feel the most comfortable going forward. 

Fund What You Can, When You Can

The IRS has once again increased the amount of money you can put into your retirement account each year, with the total contribution limit raised to $19,500 for 2020. This may only be an increase of five hundred dollars for the year, but it’s a good reminder to invest money in your retirement while you have the ability to do so. Things are less certain than ever before, so funding your retirement account while you’re still financially stable simply makes sense.

Let Your Money Work

Not only can you fund your retirement more easily than ever before, but you may now avoid some of the required distributions that may have been required of you. If you can afford to avoid the distribution, try to let your money go to work for as long as you can. Keeping your money in your retirement account is going to allow you to keep it safer for a long period of time, which should in turn allow you to get more from your overall retirement investments. Now that you’ve got the choice, you can keep your money working instead of pulling it out.

Understand Market Volatility

While putting your money to work makes sense, it’s important to remember that the markets are poised to be quite volatile. As such, it would be wise to avoid taking those steps that would lead to reducing your current investing power if at all possible. Don’t pull money out of the market right now if you can help it – you may not be able to replace it as quickly as you might like. Though you should make the market moves that make the most sense for your situation, you should also be prepared for things to get a bit less certain than they may have been in years past. 

Go Remote

Finally, try to remember that a huge part of retirement planning today still involves working with professionals. If at all possible, try to meet with your various advisors remotely to help reduce the odds of contracting the virus and to adhere to your area’s social distancing requirements. While meeting virtually may feel unusual, it’s vital that you don’t let your accounts go without management. Virtual meetings will give you a chance to ensure that your retirement plans remains on the path that you’d discussed before COVID-19.

COVID-19 has derailed many plans but it doesn’t have to derail your retirement. Continue to invest wisely, take advantage of new rules and regulations, and work with your advisor to ensure that you are on the right path. With the right guidance and attitude, you can adapt to this new normal.